German authorities and officials have faced criticism for their oppositional move on crypto after selling seized bitcoin. There is summer time in Germany and for crypto, recent operations from Aug 20 indicate that German authorities continue to take strict measures against crypto-related malpractice. 

On Aug 20 German officials conducted an extensive AML (anti money-laundering) operation. And the result is they confiscated 13 Crypto ATM’s and seized up to $28 million cash across 35 locations nationwide 

This Operation conducted by financial watchdog BaFin in collaboration with police and the Bundesbank, focused on atm machines operating without licence and necessary documents, and creates a money-laundering risk.

Crypto ATM machines are used to buy and sell cryptocurrencies like Bitcoin, parkcoin, ethereum by using fiat currencies and credit cards. They function similarly to traditional ATM machines. But this crypto ATM is only for cryptocurrencies.

German Officials for Crypto ATMs

BaFin determines that exchanging euros to cryptocurrencies and vice versa, qualifies as a commercial activity and needs proper authorization under Germany’s Bank act.

The Unlicensed activity of Crypto ATMs raised problems about illegal links to criminal activities including money laundering and terrorist financing, considering the anonymity frequently linked to these transactions

The watchdog reaffirmed its dedication to preserving the integrity of the German financial system, emphasizing the critical role of regulatory compliance in safeguarding consumers.

ATM operators now face potential prosecution, with possible penalties of up to five years in prison, as reported by AML Intelligence.